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Three insights: what do Chinese farmers want from Australia and NZ?

Growing, wealthier populations in China and Vietnam are demanding more and more agricultural imports but quality expectations and the strength of the competition is very high.

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That was our core takeaway for farmers who travelled to China and Vietnam as part of the ANZ grains delegation from Australia and New Zealand earlier in 2016.

" If [Australia and NZ) can get our act together, there’s going to be huge potential."
Ron Hawkins, ANZ grains delegation attendee

The delegation attended the inaugural Australian Grains Industry conference in Beijing in a bid to create a better understanding of the industry in China and Vietnam.

The trip aimed to get behind the data out of these growing nations and let farmers see for themselves how the markets play out. Below are three key insights I took from attendees on the trip.

What do Chinese farmers want from Australia and NZ?

• DEMAND IS INCREDIBLE…

“What I’ve observed throughout China and in Vietnam in particular is there’s a real, insatiable appetite for grain.” - Reagan Stroud, Pearson’s Group, Victoria

• …BUT SO IS THE COMPETITION

“The thing that hit us most I think was the fact there was produce here… from lots and lots of countries. Australia is just a small part of it. So if we can get our act together, there’s going to be huge potential.” - Ron Hawkins, Minimay, Victoria

“I expected to see much more Australian branding. I thought the presentation of Australian products was quite poor. It is a massively competitive market and all of the international players are doing a good job. Australian products have got a long way to go.” - Warrakirri Cropping CEO Adrian Goonan

• ‘QUALITY’ MEANS DIFFERENT THINGS

Consumers in China and Vietnam are moving away just buying food to looking for quality in what they buy.

“The quality driver is becoming particularly important from the middle classes." - Ross Johns, ANGIP Nominees, Victoria

Quality is thought of differently in the markets the delegation visited than it is in Australia or New Zealand.

“In China and Vietnam, what we’ve seen is quality is more around food safety and security, more so than any distinguishing quality characteristics at this point in time.” - Reagan Stroud, Pearson’s Group, Victoria

Watch the video above to find out more.

Mark Bennett is Head of Agribusiness, Australia at ANZ

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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